3 Stocks Dragging In The Services Sector

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 16 points (0.1%) at 16,738 as of Wednesday, June 4, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,399 issues advancing vs. 1,611 declining with 145 unchanged.

The Services sector currently sits up 0.4% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the sector include AthenaHealth ( ATHN), down 2.6%, Companhia Brasileira De Distribuicao ( CBD), down 1.4%, LATAM Airlines Group ( LFL), down 1.4%, McKesson ( MCK), down 0.9% and Time Warner ( TWX), down 0.6%. Top gainers within the sector include Walgreen ( WAG), up 4.1%, Omnicare ( OCR), up 3.2%, Delta Air Lines ( DAL), up 2.5%, Whole Foods Market ( WFM), up 1.9% and H&R Block ( HRB), up 1.9%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. Royal Philips ( PHG) is one of the companies pushing the Services sector lower today. As of noon trading, Royal Philips is down $0.25 (-0.8%) to $31.48 on average volume. Thus far, 267,652 shares of Royal Philips exchanged hands as compared to its average daily volume of 533,100 shares. The stock has ranged in price between $31.43-$31.53 after having opened the day at $31.52 as compared to the previous trading day's close of $31.73.

Koninklijke Philips N.V. is engaged in healthcare, consumer lifestyle, and lighting businesses worldwide. Royal Philips has a market cap of $28.8 billion and is part of the consumer durables industry. Shares are down 14.2% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst that rates Royal Philips a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Royal Philips as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive. Get the full Royal Philips Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

2. As of noon trading, Liberty Global ( LBTYK) is down $0.28 (-0.6%) to $42.72 on average volume. Thus far, 1.7 million shares of Liberty Global exchanged hands as compared to its average daily volume of 3.7 million shares. The stock has ranged in price between $42.66-$43.05 after having opened the day at $42.99 as compared to the previous trading day's close of $42.99.

Liberty Global plc, together with its subsidiaries, provides video, broadband Internet, fixed-line telephony, and mobile services in Europe, Chile, Puerto Rico, and internationally. Liberty Global has a market cap of $24.4 billion and is part of the media industry. Shares are up 2.0% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Liberty Global as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and feeble growth in the company's earnings per share. Get the full Liberty Global Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

1. As of noon trading, Pandora Media ( P) is down $0.67 (-2.7%) to $23.94 on average volume. Thus far, 6.5 million shares of Pandora Media exchanged hands as compared to its average daily volume of 11.1 million shares. The stock has ranged in price between $23.10-$24.20 after having opened the day at $23.59 as compared to the previous trading day's close of $24.61.

Pandora Media, Inc. provides Internet radio services in the United States. The company allows listeners to create up to 100 personalized stations to access free music and comedy, as well as offers Pandora One, a paid subscription service to listeners. Pandora Media has a market cap of $5.0 billion and is part of the media industry. Shares are down 7.5% year-to-date as of the close of trading on Tuesday. Currently there are 17 analysts that rate Pandora Media a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates Pandora Media as a sell. Among the areas we feel are negative, one of the most important has been generally deteriorating net income. Get the full Pandora Media Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you are interested in one of these 3 stocks, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).
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